The US and UK have both taken action to limit the influence of major Chinese telecommunications equipment firm ZTE Corp., on the grounds of national-security concerns.
The US Commerce Department has invoked a 7-year export ban on ZTE due to the Chinese company’s alleged violation of a deal made last year following allegations of trade relationships with North Korea and Iran, where ZTE also agreed to pay a $1.19 billion fine.
For ZTE, currently the world’s fourth largest telecommunications equipment manufacturer, the ban will prevent sourcing of US components which it heavily relies on to make phones and other products.
In a separate move, UK cybersecurity regulators issued a warning to UK telecoms companies, urging them to cease business with ZTE and use of its products, reported the Wall Street Journal.
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